Payday Loan Traps

CFPB propose rule to protect consumers from payday loan traps.

The Consumer Financial Protection Bureau is working to end payday loan traps. Today, we’re announcing a proposed rule that would require lenders to determine whether borrowers can afford to pay back their loans. The proposed rule would also cut off repeated debit attempts that rack up fees and make it harder for consumers to get out of debt. These strong proposed protections would cover payday loans, auto title loans, deposit advance products, and certain high-cost installment loans. For more on the rest of this announcement…

Consumer Financial Protection Bureau “CFPB” has successful knocked the knees out from under large banks for fraudulent lending practices, car dealers for misleading loans, military loans designed to put veterans in a financial nightmare.  Their web site is full of great reference materials about your rights and the obligations of lenders.  It is very easy to file complaints, and, unlike most Attorney General’s Office, those complaints are actually investigated.
CFPB’s latest blog and announcement explains their pursuit of payday loan companies. Go here for more information related to payday loans.  Learn why they are dangerous and why a borrower of one small loan ends up owing hundreds of dollars in interest.  CFPB is asking that borrowers share their experiences with payday lenders.  It is easy to fill out the information and valuable for gathering statistics on this industry that currently has very few controls.
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